Cross Company reported the following results for the year ended December 31, 2014, its first year of operations: Income (per books before income taxes) Taxable income 2014 $ 1,500,000 2,400,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2015. What should Cross record as a net deferred tax asset or liability for the year ended December 31, 2014, assuming that the enacted tax rates in effect are 40% in 2014 and 35% in 2015? O $360,000 deferred tax liability O $315,000 deferred tax asset O $360,000 deferred tax asset O $315,000 deferred tax liability

Cross Company reported the following results for the year ended December 31, 2014, its first year of operations: Income (per books before income taxes) Taxable income 2014 $ 1,500,000 2,400,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2015. What should Cross record as a net deferred tax asset or liability for the year ended December 31, 2014, assuming that the enacted tax rates in effect are 40% in 2014 and 35% in 2015? O $360,000 deferred tax liability O $315,000 deferred tax asset O $360,000 deferred tax asset O $315,000 deferred tax liability

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 4BCRQ

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